Chinese electric vehicle (EV) maker Li Auto (NASDAQ: LI) announced Monday that it has completed an offering of $862.5 million aggregate principal amount of convertible senior notes due 2028 with a 0.25 percent coupon rate.
This includes the exercise by all initial purchasers of the offering of an option to purchase up to an additional $112.5 million principal amount of notes.
On April 6, Li Auto announced that it will issue $750 million of convertible senior notes due 2028.
Li Auto also plans to grant initial purchasers a 13-day option to purchase up to an additional $112.5 million of the notes.
On April 8, Li Auto announced that it has set a 0.25 percent annual coupon on the $750 million convertible senior notes, with an initial conversion rate of 35.2818 American Depositary Shares (ADSs) per $1,000 principal amount.
This equates to $28.34 per ADS, a premium of approximately 27.5% to Li Auto's closing price of $22.23 on April 7.
Bondholders may request Li Auto to repurchase all or a portion of the bonds on May 1, 2024, and May 1, 2026, for cash at a price equal to 100% of the principal amount of the bonds to be repurchased, plus accrued and unpaid interest.
Li Auto plans to use the net proceeds from the bond offering for 1) research and development of new vehicle models, including BEV models, 2) research and development of leading technologies, and 3) working capital and other general corporate purposes.